CORDIS - Resultados de investigaciones de la UE

Disrupting the economy – FinTech blockchain solution revolutionises direct payments. Secure, low-cost and simple bank-free payments for everyone

Periodic Reporting for period 2 - BILLON (Disrupting the economy – FinTech blockchain solution revolutionises direct payments. Secure, low-cost and simple bank-free payments for everyone)

Período documentado: 2018-08-01 hasta 2019-11-30

Project covers introduction, implementation and scaling up a holistic blockchain based payment suite. Unlike other blockchain based initiatives project does not use any cryptocurrencies. It based on national regulated currencies - initial blocks representing monetary values can be created only by an authorized entity (Electronic Money Publisher, according to European Union regulations).

The project vision is to create an eco-trading system with Electronic Money that would function in parallel with current payment systems. The mission is the provision of payment services based on blockchain technology, in areas where currently the so-called alternative payments, and traditional methods of payment do not solve the problems of end users. The use of blockchain technology allows to provide cheaper, faster services with better "User experience" and more tailored to the needs of target groups of recipients. At the same time, it eliminates the risk from the system by combining authorization, settlement, information and document flow into one transaction.

Project covers two main product lines, dedicated for different market sectors:

- motivations and loyalty tool - a product intended for Users - entrepreneurs, allowing, in a simple and cost-effective manner, to motivate mass groups of people using, several types of payments (bonuses, rewards, etc.)
- e-commerce payments and monetization of online content - a product intended for microentrepreneurs and online stores offering their goods / content on the Internet and using their services to individuals, allowing them to make and accept payments even at a very low value. The product can be also adjusted for marketplaces creating unique split payment solution for uber-like services.

Additionally project is the basis of blockchain based payments without cryptocurrency usage, that can be used for interbank or intercompany transborder money transfers in national currencies.
During given project phases we were focused on several areas. First of all the technical part of our solutions was under heavy development. Following tasks had been already accomplished:

- new self- signed payment system, dedicated for e-commerce, internet content providers and streamers had been introduced
- the motivation and loyalty tool (payout panel) had been redesigned and important from the corporate customer perspective functionalities, such as user roles and permission in the system had been added
- motivation and loyalty tool has been also equipped with functionalities supporting creating customised promotional programs
- several APIs for connecting to external components e.g. e-commerce software, or CRM systems like had been developed
- new functionalities which increase application usability - like direct payout collection or important from legal point of view like fully automated know your customer process had been introduced.
- end user mobile applications giving also additional “spent capabilities” by integration with card infrastructure.

The other activity area was defining new internal processes in the support area. The holistic end user and a corporate client support process and customer loyalty had been designed and deployed. Billon end user scand corporates have several channels to communicate with Billon team and get help.
Billon internal support team had been equipped with proper ticketing software system, which had been integrated with Billon end user mobile and desktop applications and support hub section on the web site. The KPIs for the support team had been defined and the process of customer satisfaction measurement had been started.

Last but not least several tests and pilots with customers had been executed in both: e-commerce payments and motivation area. Moreover new product dedicated for marketplaces - payment distribution platform, which is based on payment and payouts module has been recently introduced. The platform itself is prepared also for use for large corporate client, especially banks and other financial companies for creating custom instant payment schemes.

The project also involved the legal and regulatory aspects. During its period Billon:
- had been granted with small e-Money license, as a first blockchain based company in the UK by British regulator FCA
- got as a first ever company the e-Money license from Polish regulatory authority KNF. This license can be passported to other European Union countries, which is planned in 2020 as a part of our international expansion
Our 3 main Use cases (for FMCGs, for Digital and for Financial Institutions) have proved that our technology has socio-economic impact and the wider societal implications.
Our technology helps with:
- financial inclusion - circa 70% of current accounts are unprofitable which leaves 191 million people excluded from banking; Our solutions allows to serve that population profitably.
- expansion of developing markets - FMCGs have been using alternative payments to avoid high cost, and served unbanked. But £8 out of every £10 spent on voucher-like payments are wasted. Our solution allows to serve these clients again, offering a product ideal for developing markets
- opening of new markets, bringing underbanked and unbanked affordably into the digital economy - Media companies are struggling to monetise content on small transactions. Micropayment services charge minimum transactions fees many times larger than the transaction. Our solution allows content creators, digital merchants and platforms to serve this clients increasing profitability and opening new market.

The third area is payment processing platform allowing for SMEs creating new business models being a part of sharing (peer-to-peer) economy. This platform by combining two above payments and payouts solution is dedicated for marketplaces and gives the easy - programmable tool for supporting reconciliation, splitting the payments between the contractors and marketplace operators on the fly in real time, which also separates payments from customer acquisition and jobs management.
The e-money blockchain based platform without cryptocurrency legacy is also capable of creating customised payment schemes for financial institutions and large corporate clients as a tool for 24/7 payments on local and international level for liquidity management, creating new added value products and cutting off the invoice flow chains.
Screenshot from the Billon app
Robert Kaluza discussing how EU funding benefited Billon at the Wolves Summit
Refreshed Billon Application main screen
Billon Team with an award of Singapore Fintech Festival 2018
Billon Chief Growth Officer David Putts presenting at Money 2020
Billon stand at Cracow Game Days